Pakistan has agreed to import Russian crude oil at a discounted price, following the agreement reached during the intergovernmental committee meeting in Moscow. News I mentioned.
Federal Minister of Energy Sardar Owais Leghari led the Pakistani delegation to the meeting. The two sides decided to resume crude oil trade from January 2025, with Pakistan importing one consignment every month under a government-to-government (GtG) agreement.
According to a senior government official, Pakistan Refining Limited (PRL) will import 12 cargoes of Russian crude oil annually under the new arrangement.
One of the key developments at the IGC meeting was the resolution of the payment mechanism, which was facilitated by the Governor of the State Bank of Pakistan. Both countries are optimistic that the payment process will be successfully managed through banking channels to ensure smooth transactions.
The meeting also addressed other issues, including railway connectivity between Pakistan and Central Asian countries, the $3 billion Pakistani gas pipeline project, and ways to boost bilateral trade. Final agreements on these matters are expected to be signed on December 4, 2024.
The imported Russian crude oil will be processed by Pakistan Refinery Company Limited, which is expected to generate profits. Profits will be reinvested in the refinery development project, with additional incentives provided by the government under the Brownfield Policy.
Minister Legari and Russian Transport Minister Roman Starovoit discussed expanding bilateral communication during the meeting, with the aim of benefiting both countries and the region as a whole. Minister Leghari is currently in Moscow to co-chair the ninth session of the Pakistan-Russia Intergovernmental Committee.